XRP Price Rally Faces Resistance at $0.65
The XRP price surged above $0.60 following the news that the SEC dropped charges against Ripple executives. However, on-chain indicators suggest that the rally could soon encounter resistance. The recent rally was fueled by whales accumulating significant amounts of XRP, with their holdings increasing by 80 million coins between October 21 and November 2. However, historical data shows that these whales started buying when XRP was trading around $0.65, raising concerns that they may start booking profits once the price reaches that level.
XRP Traders Approach Double-Digit Unrealized Profits
The Market Value to Realized Value (MVRV) ratio for XRP also indicates potential bearishness in the market. The MVRV chart shows that investors who bought XRP in the last 90 days could make up to 9% gains if they sold today. This suggests that there is a significant amount of unrealized profit among current holders, which could lead to profit-taking and selling pressure in the future.
XRP Price Prediction: $0.65 Resistance Could Be Critical
From an on-chain perspective, the XRP price is likely to face resistance once it approaches $0.65. The Relative Strength Index (RSI) is currently at 72.30, indicating overbought conditions and suggesting a potential sell-off as prices near this level. On the downside, if bears take control, they could push the price towards the $0.50 area, with a strong support level at $0.54.
Hot Take: Potential Roadblocks Ahead for XRP Price Rally
While the recent rally in XRP has been driven by positive news and whale accumulation, there are several indicators suggesting potential roadblocks ahead. The historical accumulation trend of whales around $0.65 raises concerns about profit-taking, while the MVRV ratio indicates that current holders have significant unrealized profits. Additionally, the RSI suggests overbought conditions and a possible sell-off. Therefore, it is important for XRP investors to be cautious and monitor these indicators closely as the price rally continues.
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